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Hi... I am Vivek ,studying in 12th standard.I have a question here !!!!

Apiece of equipment cost a certain factory Rs. 600,000. If it depreciates in value, 15% the first year, 13.5 % the next year, 12% the third year, and so on, what will be its value at the end of 10 years, all percentages applying to the original cost?

7 years ago


Answers : (2)


Let the cost of an equipment is Rs. 100.

Now the percentages of depreciation at the end of 1st,2nd,3rd years are 15, 13.5,12, which are in A.P., with a=15 and d= -1.5.

Hence, percentage of depreciation in the tenth year = a + (10-1) d = 15 + 9 (-1.5) = 1.5

Also total value depreciated in 10 years = 15 + 13.5 + 12 + ... + 1.5 = 82.5

Hence, the value of equipment at the end of 10 years=100 - 82.5 = 17.5.

The total cost being Rs. 6,00,000/100 * 17.5 = Rs. 1,05,000.

I think my answer is correct

7 years ago

ya ....Ur answer is Correct !!!!!!! 

7 years ago

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